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A multinational publishing house is looking to adjust its bonus structure for editors based on the performance of the books they manage. The company aims

A multinational publishing house is looking to adjust its bonus structure for editors based on the performance of the books they manage. The company aims to explore the relationship between the performance of a book series and the bonuses awarded to editors.

The table below shows the data from the previous year, detailing the bonuses received by editors and the yearly percentage increase in sales for each book series they managed. These variables are labelled as Bonuses and SalesGrowth, respectively.

a) Construct a scatter plot for the editors' bonuses (variable Bonuses) against the yearly sales growth (variable SalesGrowth). Discuss any observable trends and relationships. Are any outliers or high leverage points present in the dataset?

b) Fit the model below and document your findings. = 0 + 1 +

c) Generate the corresponding residual plot (residuals versus predicted values). Evaluating this plot, does the estimated model seem adequate?

d) Estimate a revised model, now incorporating the adjusted variables Bonuses-Adj and SalesGrowth-Adj, which exclude any data points where editors' bonuses seem disproportionately high relative to the sales growth of their book series. Through the findings identify nine data points that are disproportionately high; include these in the response.

Bonuses ($) SalesGrowth (%)
56940 14.1
52052 10.9
58344 23.5
30056 5.9
71136 13.8
59540 20.0
56056 16.4
56888 16.3
64324 10.5
43316 26.3
29484 25.9
48516 26.8
69628 14.8
48724 22.3
104572 56.3
82420 12.6
47060 20.4
55016 1.9
47944 19.9
63440 15.4
53144 38.7
39468 16.4
73528 24.4
54132 15.6
87776 14.4
155116 19.0
60320 16.1
199888 12.1
24752 16.2
77584 18.4
53248 14.2
82836 14.9
22204 12.4
43108 17.1
41444 16.9
30004 18.1
69784 10.9
92248 19.3
36868 18.3
44720 18.4
69472 13.8
26832 13.7
48412 12.7
42380 15.1
87412 16.5
29536 10.2
40300 19.6
61776 12.8
40664 15.9
60840 17.3
76388 8.5
47632 16.4
55640 19.5
46488 19.2
43108 15.9
40560 19.9
121004 28.1
37284 25.0
71136 15.0
105456 12.6
62140 20.3
13312 22.7
40300 14.8
73164 13.2
28236 10.3
45448 17.7
66924 10.0
64896 15.6
45500 6.8
48100 12.4
41496 13.1
39520 15.8
31200 12.8
51532 15.3
81640 0.5
47372 16.5
70720 15.1
36400 13.0
38532 11.1
57044 8.9
49556 17.5
22932 15.9
30940 14.2
55484 9.3
67496 9.5
93496 15.5
215436 14.4
69472 11.1
91000 15.9
47424 16.4
98384 8.6
43316 24.6
59384 15.4
60268 16.9
66716 7.2
109668 11.6
54028 26.4
51584 21.4
65156 19.2
37492 15.1
70252 9.0
72332 9.4
64740 19.0
80600 3.5
111800 22.1
95992 10.9
29796 15.1
345280 10.2
49868 17.3
31824 33.3
94640 22.8
73372 11.1
53352 12.4
66924 20.9
41600 6.7
57980 7.1
84812 11.8
99320 14.0
51792 10.1
47736 6.4
65572 12.4
54756 17.6
63492 15.1
90376 23.6
163384 35.7
98800 23.2
22204 12.4
88400 44.4
18720 2.1
23868 18.4
69680 16.1
37908 15.1
11596 22.7
109252 23.4
56264 25.7
92612 27.0
41132 19.9
108784 43.7
81796 16.4
54340 11.6
88088 24.8
23556 26.2
58760 44.5
69368 22.3
69888 22.3
82420 35.1
101192 13.1
84188 11.0
84240 19.4
50284 28.5
74412 43.9
64012 26.8
40040 15.7
82888 15.0
81536 28.2
51740 15.4
56004 20.0
60372 42.2
72852 19.6
58604 16.2
159536 21.5
37960 29.5
37908 22.6
584116 22.9
49348 13.0
189592 7.8
78104 48.1
41964 18.0
37076 18.0
77428 21.7
38272 21.3
63752 26.9
28236 30.5
770744 19.4
46280 15.6
84604 19.4
125216 29.1
116896 40.8
40924 13.7
24648 11.1
22828 10.8
24180 5.1
30888 12.3
35776 7.4
31564 6.2
32968 12.7
27664 10.6
22932 7.4
36088 12.6
27040 12.8
39364 2.9
34736 13.5
41756 10.7
26000 11.9
28704 12.9
21424 10.1
57200 7.3
49868 14.6
17316 13.8
26156 8.9
23296 14.0
38064 12.9
37440 14.5
42016 14.7
48360 9.0
27300 15.5
34216 12.1
28860 13.7
32552 14.4

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